Property sales close to double
Property sales in Timaru during December almost doubled those in December 2019, with North Island buyers looking to make the move south.
Latest Real Estate Institute of New Zealand figures show 76 properties were sold in Timaru in December last month compared with 42 in December 2019 and 43 in December 2018. It followed a strong sales month in November onth, with 84 sales in Timaru.
‘‘There has been a noticeable increase in inquiries and sales from out-of-town buyers, especially from the North Island, looking to move here for work primarily but also for family and lifestyle,’’ Real Estate Institute of New Zealand Timaru ambassador Julian Blanchard said.
The median property price in December was $384,000 compared with $360,000 in December 2019 and $355,000 in December 2018 but lower than the $410,000 of November 2020. That compared with a national median price of $749,000 in December.
‘‘The median price of $384,000 is lower than November and shows that in the market, while buoyant, it is the $400,000 and under sector where the majority of buyers are active and looking,’’ Blanchard said.
The median number of days to sell was 28 in December 2020 compared with 29 in December 2019 and 37 in December 2018.
‘‘The local economy has been strong after lockdown and with lower interest rates, more people are looking to buy.
‘‘Sales figures are from across the price ranges but what has changed in the past 12 months is that there are few houses sold under $300,000 – there are still units and smaller houses in that price range – so that tends to push the median house price up.
‘‘First-home buyers in the under $400,000 market are particularly strong.’’
There was a shortage of listings, he said.
‘‘There are more people looking than there are houses on the market and with houses selling more quickly, there is a lack of stock across the market, especially in the lower end.’’
While Timaru’s property market was buoyant, it was not in a boom, Blanchard said.
‘‘Given that the prices are not skyrocketing as some people think, it is not the boom that was seen in the market in the mid-2000s.’’
However, there was real confidence in the market, he said.
‘‘There is good commercial development happening and the rural sector is in good heart.
‘‘This flows on to the real estate market where people want to move to different houses, creating activity and opportunities for people.
‘‘Timaru and South Canterbury have remained strong for the past few years, and it is a good market for both buyers and sellers.
‘‘Buyers can take confidence that prices are slowly moving upwards, giving them capital gain, and sellers can
take confidence that there are a good number of buyers who want to buy property.’’
Corresponding figures for other parts of South Canterbury showed a similar picture.
The number of sales in Geraldine dropped slightly over the 12-month period to December last month, following a surge in sales in November 2020, but there was a significant price increase and properties are being snapped up much faster.
It took an average 20 days to sell eight Geraldine properties at a median price of $410,000 in December , compared with 57 days to sell 10 at a median price of $368,000 in December 2019.
In November 2020, 19 properties took an average 37 days to sell at a median price of $415,000.
It took longer to sell properties in the Mackenzie but the number of sales and property prices increased. In December , 18 properties took an average 54 days to sell at a median price of $550,000 compared with five properties in December 2019 which took an average 17 days to sell at a median $532,000.
In Pleasant Point-Temuka, 20 properties took an average 20 days to sell at a median of $375,000 in December last month compared with 12 properties at a median $378,000, which took an average 28 days to sell.
Property prices in Waimate shot up to a median $300,000 in December last month from $260,000 in December 2019. In November 2020, they sat at $365,000. Sales numbers remained stable at between nine and 10 while it took an average 43 days to sell in December 2020, compared with 22 days in November 2020 and 31 days in December 2019.
Across New Zealand, REINZ data showed the average median house price was up by 19.3 per cent to $749,000 in December, from $628,000 in December 2019.
It also showed that 11 regions and 27 districts turned in record median prices in December, thanks to double-digit annual growth.
Gisborne led the way with a 43.9 per cent year-on-year increase, which lifted its median price to $590,000 in December .
The other 10 regions were West Coast, Manawatu¯ / Whanganui, Hawke’s Bay, Northland, Taranaki, Wellington, Waikato, Auckland, Canterbury, and Nelson.